Adhering to boilerplate notice clauses

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Greenclose Limited v National Westminster Bank PLC [2014] EWHC 1156 (Ch)

The recent case of Greenclose Limited v National Westminster Bank considered the effect of a notice purported to be given by one contract party otherwise than in strict compliance with the notices clause in the contract boilerplate provisions.

Greenclose entered into an agreement for a loan of £15 million with NatWest. The bank had the option to continue the arrangement for an extra two years on top of the initial two years if notice of this was given before 11am on 30 December 2011.

A fax from the bank on the morning failed, and emails and voicemails were unanswered. The contract's boilerplate clauses specified the methods in which the notice could be given – email was not one. The court held that email was not an effective way to notify under this contract. The method must be within the boilerplate clauses.